California orders Coinflip to pay more than $4.8 million in compensation over about 500 ATMs.
On November 4, the California Department of Financial Protection and Innovation (DFPI) ordered cryptocurrency ATM operator Coinflip to compensate local scam victims more than $4.8 million and pay an additional $350,000-plus in illegally collected excess fees, while also requiring it to stop its unlawful practices. An investigation found that since 2021, Coinflip had failed to adequately identify users or effectively detect and report suspicious activity. Some transactions also exceeded California’s daily customer limit of $1,000. The DFPI said scammers often impersonate trusted organizations and trick victims into withdrawing cash, then transfer the funds through nearby ATMs.
· Compensation is for scam victims in the state, and the amounts and number of devices reflect the scope of the regulatory order.
· The DFPI noted that older adults are especially vulnerable to these types of scams.
Do you usually check ATM transaction and daily limits?
On November 4, the California Department of Financial Protection and Innovation (DFPI) ordered cryptocurrency ATM operator Coinflip to compensate local scam victims more than $4.8 million and pay an additional $350,000-plus in illegally collected excess fees, while also requiring it to stop its unlawful practices. An investigation found that since 2021, Coinflip had failed to adequately identify users or effectively detect and report suspicious activity. Some transactions also exceeded California’s daily customer limit of $1,000. The DFPI said scammers often impersonate trusted organizations and trick victims into withdrawing cash, then transfer the funds through nearby ATMs.
· Compensation is for scam victims in the state, and the amounts and number of devices reflect the scope of the regulatory order.
· The DFPI noted that older adults are especially vulnerable to these types of scams.
Do you usually check ATM transaction and daily limits?
